Save your deposit inside super.

The FHSS scheme lets first home buyers make voluntary contributions into super and then withdraw them (plus deemed earnings) to help fund a home deposit. The tax advantages of super — particularly the 15% contributions tax on salary sacrifice versus your marginal rate — can meaningfully boost the deposit you save.

From 1 July 2022, the maximum you can release is $50,000 of voluntary contributions (across all years) plus associated deemed earnings calculated by the ATO. Each financial year, only up to $15,000 of voluntary contributions count toward the scheme — contributions above that in any year do not count.

The ATO calculates deemed earnings using the shortfall interest charge (SIC) rate — broadly the 90-day bank bill rate plus 3 percentage points. This rate is applied to the balance of your eligible contributions for each year they remain in super. It approximates what the money could have earned. Our calculator uses 6% p.a. as a typical estimate.

Concessional (before-tax / salary sacrifice) contributions and deemed earnings are included in your assessable income in the year of release, but you receive a 30% tax offset. So the effective withdrawal tax rate is your marginal rate minus 30%. Non-concessional (after-tax) contributions are not taxed on withdrawal because they were already taxed when earned.

Yes — salary sacrifice into super is the most common way to use FHSS. Your employer redirects pre-tax salary into super, where it's taxed at 15% instead of your marginal rate (up to 37% or 45%). That entry tax saving, combined with the concessional withdrawal rate, is where most of the FHSS benefit comes from.

Concessional contributions are before-tax: they include employer super guarantee payments, salary sacrifice, and personal contributions you claim a tax deduction for. They're taxed at 15% entering super. Non-concessional contributions are after-tax voluntary contributions — no extra tax applies when you withdraw them under FHSS.

You request a determination from the ATO (via myGov), which confirms your maximum releasable amount. Once you receive the funds, you have 12 months to sign a contract to purchase or construct your first home. If you don't proceed, you can re-contribute the money to super or pay a flat 20% FHSS tax on it.